Kamloops Fuel Shortage Linked to New Ethanol Requirements in the USA

by Michael Reeve (CFJC Today) While the price of gas has now dropped below $2 per litre, some Kamloops residents may have had a hard time finding fuel in recent days. On Tuesday a few stations in Kamloops ran out of fuel and were forced to shut down their pumps.

“Over time this will get resolved but right now producers are scrambling for supply. And the reason why? There is gasoline in B.C. and Alberta but they can’t supply, it doesn’t meet the fuel specifications required by government mandates. So, that is the reason you are seeing all the companies crumbling. That is why you are seeing the retail marketing margin, which is where the blending occurs, they have been very expensive or higher,” said Vijay Muralidharan, Managing Director for R Cube Economic Consulting Inc.

While most stations in Kamloops have received a new shipment of fuel and have reopened, it’s likely more shortages could be on the way. The demand in the United States will drop as we approach September, but there will be a lag before Western Canada sees any benefit from it. READ MORE